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Development of reusable bid evaluation models for the Portugese Electric Transmission Company

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  • Bana e Costa, Carlos A.
  • Lourenço, João C.
  • Chagas, Manuel P.
  • Bana e Costa, João C.

Abstract

Bid evaluation is the process of selecting a contractor from a number of bidders. The decision analysis models currently in use at the Portuguese Electric Transmission Company (REN) to evaluate bids were developed through a decision conferencing process supported by the MACBETH multicriteria approach and software. This paper presents the various components of this interactive socio-technical process. Given the number of contracts awarded by REN each year, it was crucial that the models be reusable in similar calls for tenders; this required substantial care in structuring the criteria, with a focus on constructed scales, and building value function models based on qualitative pairwise comparison judgments of difference in attractiveness. Also of particular interest is the approach for weighing benefits against costs.

Suggested Citation

  • Bana e Costa, Carlos A. & Lourenço, João C. & Chagas, Manuel P. & Bana e Costa, João C., 2007. "Development of reusable bid evaluation models for the Portugese Electric Transmission Company," LSE Research Online Documents on Economics 22697, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:22697
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • F3 - International Economics - - International Finance
    • G3 - Financial Economics - - Corporate Finance and Governance
    • J1 - Labor and Demographic Economics - - Demographic Economics

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